Sure, it's the moral equivalent of financing terrorism, but who cares when there's a buck to be made? That's the reasoning going on in French investor Farzad Aduli's head at the moment. With Emiel Elenbaas of the Netherlands, Aduli is planning the Kish Fund, focused on Iran, and is currently seeking investors and hoping to raise $30-50 million.
Aduli, who holds dual French and Iranian citizenship, said Iran has several other important attractions. For one, there is no limit on transferring funds into and out of the country. There is also the recently-adopted Foreign Investment Protection Law, which, according to Aduli, “protects your investments even in case of any changes in government. It really goes quite far; in almost any event, your investment is guaranteed.”
“No matter how you look at it, sooner or later this money will flow back into the stock market.” What’s more, with the Iranian rial essentially flat against the U.S. dollar over the last year, Aduli says the country’s banks have paid interest rates that would make most U.S. hedge funds blush: upwards of 15% per year.
Aduli says that the Iranian regime will list some of the largest publicly-owned utilities on the stock market in the coming year, including oil, gas and mining concerns. The privatization moves could sextuple the exchange’s overall market capitalization to about US$200 billion, and with it, potential foreign investment to US$20 billion.
“There is a possibility of some very high returns,” Aduli says.
It's like we always say: you might as well capitalize on the run on the stock market caused by our own president's bellicose posturing while you can.
Putting A New ‘I’ In BRIC, Hedge Fund Sees Opportunity In Iran [FINalternatives]